Imagine this: you work at a major company, a company that has been grossing high profits and attracted investors from all over. The share price has been steadily rising.
All is well with your employer. Or is it?
In your daily responsibilities, going through the books, you find something unnerving—signs of insider trading within your employer.
What do you do in such a situation?
Your moral compass is pushing you towards reporting, but you love your job and wonder whether this could get you fired.
As a whistleblower, the law protects you and ensures that you are not dismissed unfairly due to whistle-blowing.
Your Rights as a Whistleblower
Legally speaking, a whistleblower cannot be fired merely because they raised the alarm. The law prohibits employers from retaliating against employees, denying benefits, and anything else that may affect their employment status.
Historically, whistleblowers have helped unravel criminal activity within companies at the federal and state levels. However, even though there are laws that protect these individuals, they may still be fired due to actions not related to whistle-blowing.
For instance, a whistleblower with a history of missing duties may be fired due to their absence rather than whistleblowing. If the employee is fired solely because of whistleblowing, they may sue the employer for wrongful termination.
The False Claims Act Whistleblower Employee Protections
The False Claims Act (FCA) is a set of federal regulations that impose liability on companies accused of fraud against government programs such as Medicare. The law mostly applies to federal contractors.
It has provisions to protect whistleblower employees who may assist in the investigation.
“If you believe your employer did not have legitimate reasons for firing you other than retaliating for ratting them out to the necessary authority, you can sue them for wrongful termination,” says attorney Bill Nettles.
Under the FCA, terminated employees would have to prove the following in court:
- That their actions fall within the purview of the FCA
- That their employer knew they were helping the government with investigations
- And that the employer terminated the worker’s contract as retaliation for the employee’s participation in the investigation.
On top of that, the FCA can award compensation to a whistleblower should the government win a lawsuit against the whistleblower’s employer. The compensation may include:
- Job reinstation potentially with seniority
- Back pay potentially with interest
- Attorney fees and costs
- Special damages
Other Whistleblower Protection Laws
Apart from the False Claims Act, there are other regulations that protect whistleblower rights. This includes:
- The Sarbanes-Oxley Act of 2002 (“SOX”) – Protects whistleblowers in publicly traded corporations. It mandates such companies establish procedures that enable employees to complain anonymously. Retaliation against a whistleblower is punishable by fines or imprisonment of up to 10 years.
- The Notification and Federal Employee Anti-Discrimination and Retaliation Act of 2002 (“NO-FEAR” Act) – This regulation applies to employees of federal agencies and requires that such agencies notify all employees of their whistleblowing rights.
The Need for an Attorney
An employment law attorney’s advice and guidance should be the first thing to do before dropping the bomb on your employer’s illegal activities.
With this professional by your side, you can draft a strategy for filing your report with the necessary agency and discuss how you will avoid retaliation. Your attorney will also inform you on which state or federal law you should rely on for protection.
